CSS Industries, Inc. (NYSE:CSS) announced today the results of operations for the first quarter ended June 30, 2007. Sales decreased 2% to $46,802,000 from $47,533,000 in 2006. The net loss decreased to $4,427,000, or $.41 per diluted share, compared to a prior year net loss of $5,507,000, or $.52 per diluted share. The Company's highly seasonal orientation results in operating losses in the first and fourth quarters of the fiscal year and operating profits in the second and third quarters.

The decrease in sales is primarily due to lower sales of educational products and all occasion cards, partially offset by higher sales of Halloween products, Christmas boxed greeting cards and gift wrap. The decreased loss in the first quarter was primarily the result of lower selling, general and administrative expenses, primarily due to lower severance costs, professional fees and savings from the restructuring program announced in November 2006, as well as favorable interest income resulting from the Company's improved cash position.

"As previously announced, the Company continues to be focused on the integration of the Berwick Offray and Cleo operations, and I am pleased to report that we are achieving the fiscal 2008 savings, as expected," commented Christopher J. Munyan, CSS President and CEO. "Although it is early in the year, we continue to believe that estimated earnings for fiscal 2008 will be in the range of $2.45 to $2.60 per diluted share," continued Mr. Munyan.

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements relating to expected future earnings and financial performance. Forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management as to future events and financial performance with respect to the Company's operations. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they were made. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including without limitation, general market conditions, increased competition, increased operating costs, including labor-related and energy costs and costs relating to the imposition of retrospective application of duties on imported products, currency risks and other risks associated with international markets, risks associated with the combination of the operations of the Company's Cleo and Berwick Offray subsidiaries, including the risk that the restructuring related savings may not meet the expected amounts previously reported, the risk that customers may become insolvent, costs of compliance with governmental regulations and government investigations, liability associated with non-compliance with governmental regulations, including regulations pertaining to the environment, Federal and state employment laws, and import and export controls and customs laws, and other factors described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2007 and elsewhere in the Company's SEC filings. As a result of these factors, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.

CSS' consolidated results of operations for the quarters ended June 30, 2007 and 2006 and consolidated condensed balance sheets as of June 30, 2007, March 31, 2007 and June 30, 2006 follow: